Shore Capital says 'hold' Tate & Lyle

Darren Shirley, analyst at Shore Capital, has reiterated his 'hold'
recommendation on Tate & Lyle
(TATE.L) having attended the first day of its investor seminar in the
US.

The seminar was held at the company's Commercial and Food Innovation
(CFI) centre, which was opened in the second quarter of this year at a cost
of $32 million.

'Shore Capital was impressed by the CFI centre, which clearly
demonstrates, in our view, the commitment Tate is making to its speciality
food ingredients ambitions, a commitment we feel certain customers will also
clearly identify when visiting the facility. In this respect, we note
customer visits are said to be up +500%,' the analyst said.

'The facility has clearly enhanced Tate's capability to add value to its
customers new product development (NPD) capability, whilst we believe the
alignment of the R&D and commercial functions, has added rigour to the stage
gate process driving the group’s own innovation pipeline.'

However, Shirley said progress would take time, so he's sticking at
'hold' for now.

Deutsche Bank downgrades TUI Travel as share surge

Geof Collyer, analyst at Deutsche Bank, has downgraded TUI Travel (TT.L) from 'buy' to
'hold', saying the recent surge in the shares limits the upside for
investors.

He said the company's new strategic roadmap suggests that it expects to
deliver compound annual earnings growth of 7-10% over the coming five years,
compared with flat growth over the previous four years.

'If successful, this could add 38% to 63% to group profits by end 2017.
We have adjusted our forecasts to reflect the base case of this plan and
raised our target price from 240p to 265p,' he said.

'However, given the significant rerating over the past five months, we
have downgraded our recommendation from Buy to Hold.'

FinnCap lifts target price for Photo-Me
International

Pre-tax profits of £19.5 million were up 15% year-on-year, 7% ahead of
the forecast.

'Once again, strong underlying cash generation was evident, with the
group’s net cash position increasing from £51.8 million at the last year-end
to £70 million. This represents 19p per share and 33% of the group’s
market capitalisation,' Paddon said.

'We have increased our 2013 forecast PBT by 9% to £24.0 million from
£22.0 million and introduced a 2014 forecast pre-tax profit of £27.0
million. We have also increased our 2013 dividend per share forecast to 3.0p
from 2.8p.'

Peel Hunt puts Berkeley's target price under review as
profits surge

Robin Hardy, analyst at Peel Hunt, has put his target price for
homebuilder Berkeley Group
Holdings (BKG.L) under review following a very strong first-half profit
figure.

'At £142 million the interim pre-tax profit is well ahead of our expected
£119 million but one must be mindful of potential distortions,' he said.

'There are higher land sale and bigger commercial disposals but the
bigger issue is likely to be timing. Berkeley has been very vocal about the
impact of the new tax regime on the foreign investor market in London and
there may be some earlier than previously scheduled sales in the current
financial year.'

Although the target price is under review Hardy retains his 'buy'
recommendation, saying scope for more hefty rises in profits and dividends
supports the optimism.

Investec
backs Carnival on lower fuel price

James Hollins, analyst at Investec, has reiterated his 'buy'
recommendation on cruise operator Carnival (CCL.L) following a drop in
both the shares and the all-important price of bunker fuel.

'On the advent of bunker fuel (Houston IFO380) dropping below $600/metric
tonne we take the opportunity to reiterate our BUY advice on Carnival,' he
said.

'The shares have fallen 4% from their 12-month high at the end of
November (having gone ex the $0.50/share special dividend) and we view the
outlook for FY13E in a favourable light given our net yield, fuel, margin
and free cash flow outlook.'

Shore Capital says 'hold' Tate & Lyle

Darren Shirley, analyst at Shore Capital, has reiterated his 'hold'
recommendation on Tate & Lyle
(TATE.L) having attended the first day of its investor seminar in the
US.

The seminar was held at the company's Commercial and Food Innovation
(CFI) centre, which was opened in the second quarter of this year at a cost
of $32 million.

'Shore Capital was impressed by the CFI centre, which clearly
demonstrates, in our view, the commitment Tate is making to its speciality
food ingredients ambitions, a commitment we feel certain customers will also
clearly identify when visiting the facility. In this respect, we note
customer visits are said to be up +500%,' the analyst said.

'The facility has clearly enhanced Tate's capability to add value to its
customers new product development (NPD) capability, whilst we believe the
alignment of the R&D and commercial functions, has added rigour to the stage
gate process driving the group’s own innovation pipeline.'

However, Shirley said progress would take time, so he's sticking at
'hold' for now.

Deutsche Bank downgrades TUI Travel as share surge

Geof Collyer, analyst at Deutsche Bank, has downgraded TUI Travel (TT.L) from 'buy' to
'hold', saying the recent surge in the shares limits the upside for
investors.

He said the company's new strategic roadmap suggests that it expects to
deliver compound annual earnings growth of 7-10% over the coming five years,
compared with flat growth over the previous four years.

'If successful, this could add 38% to 63% to group profits by end 2017.
We have adjusted our forecasts to reflect the base case of this plan and
raised our target price from 240p to 265p,' he said.

'However, given the significant rerating over the past five months, we
have downgraded our recommendation from Buy to Hold.'

Shares in the group closed at 286.36p on Friday, up 0.66p or 0.23%.

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FinnCap lifts target price for Photo-Me
International

Pre-tax profits of £19.5 million were up 15% year-on-year, 7% ahead of
the forecast.

'Once again, strong underlying cash generation was evident, with the
group’s net cash position increasing from £51.8 million at the last year-end
to £70 million. This represents 19p per share and 33% of the group’s
market capitalisation,' Paddon said.

'We have increased our 2013 forecast PBT by 9% to £24.0 million from
£22.0 million and introduced a 2014 forecast pre-tax profit of £27.0
million. We have also increased our 2013 dividend per share forecast to 3.0p
from 2.8p.'

Shares in the group closed at 56p on Friday, down 1.5p or 2.61%.

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Peel Hunt puts Berkeley's target price under review as
profits surge

Robin Hardy, analyst at Peel Hunt, has put his target price for
homebuilder Berkeley Group
Holdings (BKG.L) under review following a very strong first-half profit
figure.

'At £142 million the interim pre-tax profit is well ahead of our expected
£119 million but one must be mindful of potential distortions,' he said.

'There are higher land sale and bigger commercial disposals but the
bigger issue is likely to be timing. Berkeley has been very vocal about the
impact of the new tax regime on the foreign investor market in London and
there may be some earlier than previously scheduled sales in the current
financial year.'

Although the target price is under review Hardy retains his 'buy'
recommendation, saying scope for more hefty rises in profits and dividends
supports the optimism.

Shares in the group closed at £17.21 on Friday, up 71.5p or 4.3%.

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Please sign in or register to comment. It is free to register and only takes a minute or two.

Investec
backs Carnival on lower fuel price

James Hollins, analyst at Investec, has reiterated his 'buy'
recommendation on cruise operator Carnival (CCL.L) following a drop in
both the shares and the all-important price of bunker fuel.

'On the advent of bunker fuel (Houston IFO380) dropping below $600/metric
tonne we take the opportunity to reiterate our BUY advice on Carnival,' he
said.

'The shares have fallen 4% from their 12-month high at the end of
November (having gone ex the $0.50/share special dividend) and we view the
outlook for FY13E in a favourable light given our net yield, fuel, margin
and free cash flow outlook.'

Carnival is Investec's key pick in the travel and leisure sector.

Shares in the group closed at £24.56 on Friday, up 26.07p or 1.07%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

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